How are retirement accounts, pensions, and stock options awarded upon divorce?

  • Robert S. Thomas,
  •   Family Law
  •   Comments Off on How are retirement accounts, pensions, and stock options awarded upon divorce?

In Illinois, the court may include the retirement benefits and plans earned by both spouses as marital assets available for division. Upon this determination, a Qualified Domestic Relations Order must be completed to instruct and set forth the terms and conditions of the distribution such as how much is paid to each party and when the distribution can be paid.

Pension benefits including pension benefits under the Illinois Pension Code acquired by or participated in by either spouse after the marriage and before a judgment of dissolution of marriage or legal separation or declaration of invalidity of the marriage are presumed to be marital property. The right to a division of pension benefits in just proportions under this Section is enforceable under Section 1-119 of the Illinois Pension Code.

The court will allocate stock options and restricted stock or similar form of benefit between the parties at the time of the judgment of dissolution of marriage or declaration of invalidity of marriage recognizing that the value of the stock options and restricted stock or similar form of benefit may not be then determinable and that the actual division of the options may not occur until a future date.

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